Re-sale Value on 6R Polo GTI Discussion

[MJKooLio]

Hi all, though we probably all got our cars in the last year or two as the 6R Polo GTI is fairly new... and just looked online in WA, there aren't any second hand Polo GTI's avail, still all new in stock mainly in RED

Back on topic. I've got a 2011 build, 2012 model in Silver 5dr. I got the car Jan 3rd in 2012 with 00km's on the engine.

At 14,000kms the engine block had to be replaced as oil was leaking in the piston/s. Took the car out for 3 months.

The car now has around 45,0000km (in a year and a half don't forget) with its recent service completed. (No gearbox recall either) Car has continued to chew oil on a reg basis as we all have experienced. Oil consump check tomorrow after 1000kms (which is the first time i've been able to get it time due to work commitments and timing)

I have the car on a shuttle mortgage for 5 years at a good rate. Over the 5 years it's exactly $32,000 with a $10k payout fee. Beginning of the 2014 year i'd have the car for 2 years and am keen to start looking for a new car at the end of 2014... so just before my 3rd year.

Has anyone else bought their car like this? I know I should speak to my accountant but I would like to get rid of the car before 100,000kms. As noted above, 45,000kms in 1.5 years... with a few more kms to drive.. how much will it be worth with 85,000kms? Or even 100,000kms? The silly dealerman at my VW looked at redbook and told me the other week, if now to get rid of it it's work $14-17,000. I need to at least cost $10k in a trade in or private sale to cover my bank cost if that makes sense... It is a business car (I am a photographer - lots of driving)

Thoughts?

[Finance_Analyst]

Problem buying on finance - what the car is worth is a lot less than the pay out . May have to take the hit now or hold for the duration of the loan

[MJKooLio]

Ahhh... Well I'm screwed either way getting rid of my car today (dealer offered me $18k) or get rid of the car at 3yrs; worth way less or at the end of the 5yr term... Probably with over 125,000kms.... Ugh

I hate the car game. And certainly NOT buying a Skoda in that case as my next car if my Polo GTI has depreciated that much...

[brad]

Ahhh... Well I'm screwed either way getting rid of my car today (dealer offered me $18k) or get rid of the car at 3yrs; worth way less or at the end of the 5yr term... Probably with over 125,000kms.... Ugh

I hate the car game. And certainly NOT buying a Skoda in that case as my next car if my Polo GTI has depreciated that much...

Not sure why the Skoda comment unless you have some special knowledge about Skoda depreciation rates. My $30k Octavia is 5 years old & is worth $8k. I think that's reasonable.

Hang on to the GTI another 18 months as you've already taken the biggest hit on depreciation. Your mileage doesn't help either.

Oh, and I think you'll find it's a chattle mortgage, not a shuttle mortgage.

[team_v]

Not sure why the Skoda comment unless you have some special knowledge about Skoda depreciation rates.

Hang on to the GTI another 18 months as you've already taken the biggest hit on depreciation. Your mileage doesn't help either.

I was thinking the same thing.
At a loss with the Skoda comment.

Also, cycling cars every 2-3 years is a quick way to burn through a lot of $

[MJKooLio]

Sorry Brad,

Regarding the Skoda comment, and of course each car depreciates dramatically with KMs and the car itself; People don't know that much about Skoda and nor do dealers when you trade up hence the not so good value when you want to get rid of it. I'm afraid getting a Skoda would be worse with the value of the car at the end of my purchase... Perhaps it's just the mileage in the car I buy that hurts it the most...

Will talk to my tax man regarding the current car and if to hold out to the 5yrs and then get rid of it.. But how much will it be worth and will it cover the $10k balloon payment!

[MJKooLio]

Maybe I think, as most would "my car should be worth this much!!!" But in the real world it's not...

I just love cars too much to believe its that much of a financial loss! Grrrrr

[brad]

Mate, cars are money pits not investments. Look on them the same as women, drugs & booze. Fun but they'll cost you money and in excess will stuff up your life.

Skoda prices seem to be holding up reasonably well in the Eastern states, especially if you are willing to sell privately & have the right body/engine/transmission.

No, after 5 years I doubt the balloon won't be covered if you continue to do 30,000km pa as they usually work on 15,000-20,000pa. I doubt there will be much in it though as you will be at the bottom of the depreciation cycle

[gavs]

Not exaclt yin the same ball park but if you were to buy a 10yr old Landcruiser ute, fair chance you could sell it for the same price you bought it for. Same with a Hilux.

i owned a hilux back in 2006 and i payed $7000 for it. The same year and models are still selling, with an extra 100,000kms on the clock for $7000.

Want good resale? Buy a Toyota 4x4 or a subaru.

[brad]

Wouldn't agree about Subaru but you are absolutely spot-on about LandCruisers & HiLux.